'If the nut threads cover the hole, no harm no foul, which would be what an inspector would think when he looked at it and passed to on to issue.'

Guys; the hole on the piston end of the fitting where you can see the nut threads is the original, correct hole. You see the nut threads in all of them, which is why you have to remove the piston and nut to ream out the gas port using that hole. That's the only way to get to the gas port because of the angle as evidenced by the oblong shape of the hole. The other hole toward the muzzle end is the incorrect one and does indeed work as a 'gas vent' (unfortunately) and probably has turned that carbine into a straight-pull bolt action. I would have it wire-welded shut and push on towards Berlin!